I realized I tend to summarize things, and after I've summarized them I don't really bother to elaborate too much on them. So after posting the basic concepts in my earlier posts, I tend to have not much to post anymore.
Basically, to retire young you just need to
1) Earn sufficient
2) Spend less
3) Save more
It's more or less these basic points. I noticed that MMM tends to keep repeating the points and that's how he keeps posting so much and also how to get many readers. I'll try to post most stuff as the days go by. I've been really busy with my new job recently. My target to leave/semi-retire will be 13 June 2015.
Ok down to my post proper.
Many Singaporeans complain that a SGD400k HDB is crazily expensive and that a couple with SGD2k pay each or less would not be able to afford it.
Let's analyze the problems here and what we can do about it.
HDB prices are at SGD400k. That's a problem. What can we do about it? COMPLAIN!!! Scream to the world, vote the PAP out! Hold protests at Hong Lim Park! Make more noise.
Well, that's one way to go about doing things. Making noise and expecting things to change without doing anything yourself.
I'm not sure if anyone noticed the 2nd problem here.
Why is the person/couple making less than SGD2k per person? What can THEY do about it? They could take up courses, upgrade, find new jobs, etc. There are actual ACTION items which can be done to raise the income level so that they would have an easier time affording a HDB.
Many people want to remain constant and just complain when things are not going their way. The truth is that you can do whatever you want but you cannot control all the outcomes. You cannot expect to be a cleaner and want to also earn SGD5k per month. You can throw hot coffee at your boss in the morning but you cannot expect to keep your job. What many people do not understand or do not try to see is that they have choices and that they can make the right choices to move themselves up the ladder.
People tend to complain that things are too hard. Change is too hard, taking new courses is too hard. Everything is too hard. Nothing is free in this world. Sacrifices have to be made to move up.
I don't love my job. It pays well. I can complain and say the job sucks. And it does... really... and I could just quit. But then I'd end up with no job and will not have enough assets to sustain my early retirement plan. I would need enough funds/assets to generate a passive income to be able to sustain a relatively fair standard of living.
(I will talk about fair standard of living in my next post.)
So I endure. I endure another year or so and hopefully, by then, I would have enough to execute my early retirement plan.
I could think of so many simple options to earn more than SGD3k pay.
1) A fresh grad in the finance sector would earn about that amount.
2) A taxi driver would easily earn more than 3k pay. This is the truth. I've spoken with many taxi drivers and after petrol and rental, they said 3k is easy. You just need to drive and pick up passengers. Not sit around drinking coffee all day.
3) A tuition teacher would earn about 3k pay or more.
4) Help take wedding pictures on weekends and you can add 1k per session which will top up your income
5) Sign on with the police/SAF. You start off under 3k pay but will get past 3k soon enough
There are so many excuses I hear. It's too hard, I don't like teaching, I don't like SAF, being a taxi uncle is too low class, etc etc. All kinds of excuses for some people to NOT do anything besides whatever they are doing right now.
CHANGE IS HARD. That is a fact. Humans don't like change. But it is only with change that your situation will CHANGE. That's the point. You can't expect things to get better without doing something about it YOURSELF.
You can complain and curse the government but that might... only MIGHT... change things. By changing yourself, you can surely do something more and get ahead with life.
SO BE THE CHANGE and not hope for everything else to change around you.
But of course I do think that SGD400k is too expensive for HDB. If I could get it cheaper, I'd be able to retire younger. But that's a selfish conclusion. It's because I need to buy a place and I'm personally impacted that's why I say it is too expensive. My true answer to this is. The market rate of HDB is about SGD400k. It is expensive. But it is affordable enough. I don't say it is affordable. I say it is affordable ENOUGH. Meaning, it won't come easy, but it isn't an impossible number to achieve. You just have to work a bit harder and save a bit more for it. It is just a trade off that needs to be made. You can't expect to buy a fast car, expensive watch every 2 months and still be able to afford the HDB even if the HDB was cheaper.
In closing, leave being this quote by Henry Ford
Whether you think you can, or you think you can't, you're right.
- Henry Ford